Hong Kong Case Law: Decisions & Judgments | LexChat

Hong Kong Case Law

Security for dividends

  • 31 Oct 2003

    RE CHIME CORPORATION LTD

    Citation
    RE CHIME CORPORATION LTD
    Court
    Court of First Instance
    Case number
    HCMP4146/2001

    The court accepted substitution of the BOC HK$520m guarantee with a multi-currency cash deposit equal to 105% of HK$520m held in jointly operated interest bearing accounts because (a) the purpose of the security was to secure dividends payable by Chime which would be returned if the allotment were set aside, (b) existing protective undertakings made it improbable the funds originated from Chime or CAL so a personal undertaking was unnecessary, and (c) the proposed 105% buffer and a replenishment/drawdown regime adequately address exchange rate risk, making payment into court unnecessary.

  • 31 Jul 2002

    TAN MAN KOU AND ANOTHER v. CHIME CORPORATION LTD. AND OTHERS

    Citation
    TAN MAN KOU AND ANOTHER v. CHIME CORPORATION LTD. AND OTHERS
    Court
    Court of Appeal
    Case number
    CACV106/2002

    The Court applied American Cyanamid principles to a s168A petition and held there was an arguable case that the allotment and dividends could be set aside; accordingly interim preservation of the dividends by escrow or adequate security and extended disclosure (including management accounts, audited accounts, minutes, and particulars of assets and significant liabilities) were justified to preserve the status quo pending full hearing, while appointment of administrators to boards was unnecessary and intrusive and should not be ordered on interlocutory relief; procedural technicalities in the…